Altair Engineering Inc.(ALTR) 2023 Earnings Summary
Bullish Points:
1. Total revenue for Q2 2023 increased to $141.16 million, up from $132.66 million in Q2 2022.
2. Net loss for Q2 2023 decreased to $22.28 million, compared to a net loss of $33.77 million in Q2 2022.
3. Cash and cash equivalents increased to $418.34 million as of June 30, 2023, from $316.15 million as of December 31, 2022.
4. Software revenue increased by 7% for H1 2023 compared to H1 2022, driven by growth in software license revenue.
5. Client engineering services revenue increased by 5% for H1 2023 compared to H1 2022, as customer demand began to stabilize.
6. Billings for the six months ended June 30, 2023, increased to $311,282,000 from $296,759,000 in the same period in 2022.
7. Free Cash Flow for the six months ended June 30, 2023, significantly increased to $83,045,000 from $14,584,000 in the same period in 2022.
8. Recurring software license rate for the six months ended June 30, 2023, was 94%, up from 93% in the same period in 2022.
Bearish Points:
1. Software related services revenue decreased 10% for the three months ended June 30, 2023, compared to the same period in 2022, due to lower customer demand for these services.
2. Operating expenses increased by 15% for the three months ended June 30, 2023, and by 17% for the six months ended June 30, 2023, compared to the same periods in 2022.
3. Net loss for H1 2023 was $24.2 million, compared to $22.2 million in H1 2022, largely due to increased operating expenses and income tax expense.
In summary, Altair Engineering Inc. (ALTR) has shown improvements in revenue, net loss, cash and cash equivalents, and software license revenue. However, there are concerns regarding the decrease in software-related services revenue and the increase in operating expenses and net loss for H1 2023. For more information, you can read the original text of Altair Engineering Inc.'s financial report: https://www.sec.gov/Archives/edgar/data/1701732/000095017023038087/altr-20230630.htm
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